According to Odaily Planet Daily, Fidelity Digital Assets released a report saying that the Ethereum blockchain experienced its highest inflation period last quarter, with the total supply increasing by approximately 110,000 ETH, equivalent to an annual inflation rate of 0.37%.

Analysts say Ethereum supply is unlikely to fluctuate wildly in the short to medium term, but increased user preference for lower-fee L2 platforms and increased demand for staking could make inflationary periods more frequent.

The report notes that the number of validators on the Ethereum network has increased by 5% since April this year, and the recently introduced re-staking may further increase staking demand.